U.S. Jobless Claims Rise to Highest Level Since April 2010

August 5th, 2010

According to the latest data from the U.S. Labor Department, initial unemployment benefit claims reached 479,000 in the last week of July. This reflects an unanticipated increase of 4.1 %, the highest level of initial jobless claims since last April.

The latest jobless claims report from the world’s largest economy make clear that the global economic crisis not only remains a potent reality; the jobs crisis now afflicting most advanced economies make a consumer-led economic recovery impossible. With governments across the globe beginning to transition from deficit-funded stimulus programs to austerity, it is equally clear that sovereigns overloaded with public debt will not be able to compensate for the fall-off in private sector demand much longer.

The latest data on U.S. jobless claims is just another indicator that a double-dip recession is becoming inevitable.